If you don’t like the idea of trying to clean up your credit report all by yourself and are thinking about hiring a credit restoration specialist, you need to determine which specialist would be right for your needs. You might even be curious about what it takes to become a credit repair professional yourself. Regardless of your intentions, it’s essential to acquaint yourself with the Credit Repair Organizations Act, or “CROA”.
In short, it was an Act passed by Congress in the late 90s after getting numerous complaints about organizations fraudulently making promises that were not possible to keep. Some of the laws consumers are now protected with thanks to this Act include:
• Protection from “credit repair” organizations and specialists misrepresenting their services
• Requirement that the organization must provide a written contract with the customer, and that the customer must be given a set number of days to cancel that contract.
• Prevention from the organization charging for services that they haven’t even yet rendered.
The Federal Trade Commission has every right to shut down organizations that do not comply with these rules, and act fraudulently and illegally.
Credit Restoration Specialist Fraud Prevention
Individuals can also sue such organizations without directly complaining to the FTC if they feel that they have been defrauded. As long as you feel that you have evidence that the credit restoration specialist violated the CROA, you might have a good case.
What exactly do legitimate credit repair firms do? They analyze your credit reports and dispute any inaccuracy with not only the credit bureaus but with the creditors themselves. They’ll do everything they legally can to help get inaccuracies and some negative items removed in the quickest amount of time possible. While you have the right to dispute these things yourself, it’s easier to allow specialists who understand all of the legalities and intricacies associated with credit reporting.
If you’re unsure about whether a particular company is legitimate, watch out for red flags. In addition the ones mentioned above, avoid falling for scams such as the company offering to help you “create a new identity” or promising anything that seems too good to be true. Read reviews and news articles related to various companies to see which ones are facing a lot of bad publicity and legal problems.
Understand the difference between credit repair services and debt relief and management services. The former will help you get rid of negative inaccuracies on your credit reports to help clean it up, while the latter focuses on helping you better manage your current debts and to improve your overall credit and financial situation.